Following a disappointing year for housing in 2014, analysts expect housing to rebound in 2015 and reach a point of "sustainable recovery," according to a recent report from the Wall Street Journal. Economists at both Fannie Mae and Freddie Mac have stuck to their predictions that housing will recover in 2015 despite receiving recent reports of slower-than-expected economic growth in the first quarter, including job gains that fell well short of expectations in March.
There are three main factors that will make the housing market sustainable this year. The first is an improved economy. Despite the recent slowdown, the economy has added 3.1 million jobs in the last year, and lower gas prices have lifted consumer confidence. Second, lenders have shown signs of expanding the credit box and lowering other costs, such as the FHA reducing its monthly mortgage insurance premium down to 0.85 percent; and third, the return of boomerang buyers, which are buyers who lost homes to foreclosure during the crisis but are now coming back to the market.
The Federal Reserve Board is now accepting Statements of Interest from individuals wishing to be considered as members of the Community Advisory Council originally announced in January. The Fed plans to fill the 15 seats on the CAC with a diverse group of experts who will represent consumer and community development organizations and interests, which will include affordable housing, community and economic development, small business, and asset and wealth building.